Question
Fallweather Enterprises stock has an expected return of 8.9 percent and a beta of .66. The market return is 11.4 percent and the risk-free rate
Fallweather Enterprises stock has an expected return of 8.9 percent and a beta of .66. The
market return is 11.4 percent and the risk-free rate is 3.7 percent. The CAPM return for the stock is _____ percent.
| a. | 8.8% | |
| b. | 11.2% | |
| c. | cannot be determined | |
| d. | none |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
